CHARGERS: While Manning signs with Denver, Smith keeps focus inward

SAN DIEGO — Chargers general manager A.J. Smith sat in his office Tuesday afternoon, fully prepared to discuss the now-completed first phase of a pivotal offseason.

The door was closed, and his attention was focused on the transitional state of his roster, from what has been done to things left to do. Meanwhile, the rest of the sports world was watching Peyton Manning officially become the Denver Broncos' quarterback.

The AFC West is changing around him, but Smith's eyes remain on the prize. Though he respects the moves made by division rivals, especially Denver's latest and possibly greatest free-agent acquisition, Smith remains fixated on building a roster worthy of a playoff spot.

"Peyton's presence won't change anything we do moving forward," Smith said. "All it does is heighten awareness to the fact that you've got a major problem winning the AFC West after a player like that shows up."

Smith said he would have made the same moves, even if he had known that Manning was headed to Denver. He spent the early days of free agency countering personnel losses and upgrading where possible in terms of depth and the starting lineup.

The Chargers have holes left to fill, although they have downshifted their aggressiveness while the market corrects itself.

"We're still targeting some players, but we're letting the market settle at several positions," Smith said. "That's very common for us. We'll pick our spots when and where we want to engage and pick up pieces here and there. Right now, we're taking a step back."

The Chargers brought in running back Jackie Battle as one of four free-agent candidates on Tuesday, but a source said Battle — who rushed for 597 yards with Kansas City last season — left without a contract offer. Smith said the team is in no hurry to sign a replacement for Mike Tolbert, who signed with Carolina on Monday, and is open on the style of any prospective running back to back up Ryan Mathews. He added that he might forego a veteran player to pick a back late in the NFL draft.

Smith said the Chargers still hope to retain defensive end Luis Castillo, nose tackle Antonio Garay and fullback Jacob Hester. A source has indicated that the team has exchanged salary numbers with all three, and that the players would have to return at a relatively team-friendly rate and, in Hester's case, a reserve role behind the recently signed La'Ron McClain.

The search for a strong safety and a pass rusher continues, but the needs will probably be addressed in the early rounds of the draft.

Smith feels urgency to fix the Chargers' defense for the short and long term, mixing the veterans on the team with fresh blood still to be acquired. The repair job starts with stability in the secondary and a ferocious pass rush, which remains a priority despite the number of players at defensive line and outside linebacker.

Don't discount the possibility of the Chargers using a high draft pick on an outside linebacker who would be allowed to develop behind Jarret Johnson and Shaun Phillips, whose contract expires after 2012.

"We want four pass rushers at different levels (of the defense and the depth chart)," Smith said, "and until we get consistent production for all four guys, the search for a unit to bring the heat rolls on."

The Chargers haven't given up on outside linebacker Larry English, their first pick in 2009, but he's likely down to his last chance. This offseason and training camp are critical for English, an oft-injured player who hasn't realized the potential the Chargers believe he has.

Though the Chargers need both a backup running back and special teams help, Smith confirmed that LaDainian Tomlinson and Kassim Osgood won't be returning to the team.

The Chargers believe they've done a solid job of countering losses, but Smith isn't ready to pat himself on the back.

"We have a huge list of players we like, and we have to be ready to adjust with the times and roll with the punches," Smith said. "If a player we like comes available at a good value, we get active again."

The Chargers know a combination of star power and depth will be necessary to compete in a resurgent AFC West now headlined by Manning and the Broncos.

"The level of competition has been raised across the board, and I include us in that," Smith said. "The arrival of Peyton Manning is a real concern, but I will take a step back and say that, before these offseason changes, you had three teams at 8-8 and one at 7-9. I saw a logjam in a division that anyone can win. At this stage, I still believe that's the case, even though Manning is a game-changer. Any ranking of the teams at this point is pure speculation, but everyone is making strides to get better."